Short form: Google suspected Bing was stealing results and they organized a sting as presented in the original post (that's where the picture is from). Microsoft's defense is that they are using a lot of input signals, one of them being clicks on Google search results apparently.

However, as was noted here http://www.puremango.co.uk/2011/02/what-on-earth-are-google-doing/, this can hardly have any good implications for Google. If this is a marketing ploy I guess they can be considered evil, if they can't control public announcements they are in the wrong too and about the technical aspect of directly stealing results versus using all clicks, well... it's best to take a humorous view:

Of course they are frustrated and outraged at a competitor 'stealing' but Google could have taken a better approach I guess. Maybe making fun of them like this :) after all if they copy Google results how will they be relevant?